| Five Methods to Improve Automotive Online Search Marketing Results |
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| Written by Dean Evans |
| Monday, 02 November 2009 14:24 |
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One of the greatest opportunities for the automotive industry today is better alignment of online search marketing efforts among all tiers. It's no exaggeration to say that millions of dollars could be saved and much more effective online search results created. Paid online search strategies should be created with one person in mind—the consumer. Unfortunately, the consumer is often largely absent from thought and discussion when each tier operates independently. What are automotive consumers looking for online? Where are they looking, when are they looking, and how are they looking? Answering these questions throughout the buying cycle and coordinating search strategy among tiers accordingly, are the keys to success.
Current Scenario
· OEMs have search strategies and spend big bucks on search.
· Regional and dealership associations have search strategies and spend big bucks on search.
· Dealerships have search strategies and many spend big bucks on search.
· In almost all cases, these strategies and spending are completely uncoordinated among the tiers.
What's wrong with this picture? Literally millions of dollars are being spent, (frequently from tiers competing with each other for key search terms) driving up costs, diluting each group's effectiveness, and often diminishing the consumer experience. The end result: wasted marketing dollars and lost sales.
Specific Example
Here's an example of the current situation that frequently leaves consumers frustrated and tiers out more money. In a Google search for "Toyota Camry Nashville," the top paid search result links to generic Prius information on the OEM site, with no information about the Camry or Nashville. The shopper requested very specific information and the OEM is paying to send them to a site that has virtually none of the information the consumer sought. Other top paid search results link directly to a "request a quote" on the corporate site, again containing no Camry information and no Nashville information.
Further, Toyota dealerships in Nashville may have just lost a sales opportunity. And this is merely one search, at one time, for one make and model, in one geographic location. Considering the implications of all vehicle searches in all locations boggles the mind. It is probably impossible to calculate exactly how much money is being wasted and how many sales opportunities are lost at the retail level. No one wins in this current state of affairs, least of all the consumer.
The point of this article is not to pick-on a single manufacturer or model; interchange any make or model in any other city and you will likely find similarly confusing results. The point is to better serve consumer needs through strategic online search marketing. With better coordination among the tiers, and more consumer focus, Toyota dealerships in Nashville would own this search term and always come out on the top of the search results, not competing with the OEM, saving money, and delivering better information to the consumer.
Step One
To begin better coordination of automotive online search efforts, it's critical that OEM marketing executives realize that online search should be their first priority and first spend, because the vast majority of consumers now use search to find vehicle information. Without this understanding, at this level, coordination efforts among other tiers will yield limited results. The key to successful marketing is getting your message in front of shoppers, where they already are, and we know that up to 90 percent of automotive consumers are on search engines. Traditional advertising still has its place, but today the highest emphasis should be placed on search marketing. In fact, this is especially true for OEMs if significant money is being spent in traditional, offline marketing. Increasingly, if consumers are affected by your offline advertising, they go directly to search engines to get more information, by-passing the OEM website or other site mentioned in the advertisement.
Step Two
At different stages of the buying cycle, consumers seek different types of information. The internet has changed consumer behavior, and the internet now plays a role in virtually every stage of the sales process. Therefore, each tier can influence consumers through online search results, depending on where shoppers are in the buying process. Strategic coordination of efforts would help each tier segment messages and search terms based on consumer behavior. For example, in the initial stages, now as far as 120 days out, most consumers are looking for high-level vehicle information. They will research vehicles available in the market, frequently at OEM sites. Moving further along the cycle, when vehicle preferences have been narrowed, consumers seek more details, including vehicle ratings and reviews. As their search narrows further, consumers will search for in-stock inventory at dealerships in their geographic area. Depending on the stage of the buying cycle, there are opportunities for each tier to offer the consumer relevant paid search results. With a coordinated strategy, the industry as a whole has a tremendous opportunity to help guide the path shoppers take with online search marketing.
Step Three
Here's another thought for better online search marketing integration: create a unified digital platform to serve all tiers and create synergy. Working together, with a single online operating system, the customer experience with online search can be managed and enhanced for all tiers and linked with inventory. The vast majority of online automotive shoppers seek inventory, but the inventory is tied to the dealership website. Online access to inventory data is critical and in most cases the dealership website is the main point of access for this data. Therefore, the most logical solution ties all tiers together, in conjunction with the dealership website, home of the much sought after inventory.
Step Four
OEMs could also be an important part of the online platform unification by aggregating online search data across tiers and advising on the most effective search terms for each. Big parts of the problem are the numerous website platforms and search marketing vendors used by each of the tiers. Information sharing can be difficult or impossible without a unified online operating system that includes the OEM. This discussion should open up among all tiers, with evaluation of a single platform or operating system that would allow for greater coordination and data sharing to determine the most effective online search marketing strategies for all parties involved, most importantly the consumer.
Step Five
Well-coordinated online search marketing should not be limited to vehicles sales. For example, dealerships lose huge opportunities if their online search terms don't include much less expensive, local long-tail search terms for dealership information that doesn't relate to vehicle searches. Automotive consumers also need parts information, service information, dealership location and directions, and more. These terms can often be purchased very inexpensively and help dealerships attract more consumers: the same ones who will make vehicle purchases in the future. Better coordination among tiers and aggregate data sharing would help dealerships take advantage of these cost-effective long-tail searches.
Conclusion
When manufacturers, regional groups, and dealerships engage in uncoordinated search strategies and compete with each other for paid search terms, everyone loses, especially the consumer. The current situation is a huge challenge for the industry as a whole, but also represents a huge opportunity for increased efficiency. The solution begins with OEM marketing executives really understanding that online search is now the most important component of a successful strategy. Search advertising messages and results should be segmented based on the buying cycle, with a coordinated strategy among tiers, conducted on a unified platform, providing a more satisfying consumer experience and ultimately more sales.
Dean Evans is CMO for Dealer.com and has over 18 years of successful experience in automotive retail marketing strategies. Contact Dean at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
or 888-260-4744.
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